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Overview

BOC Aviation leases six Boeing 787-9 aircraft to Norse Atlantic Airways

Commitment Year•2021Country of Activity•NorwayDirect Recipient Country of Incorporation•NorwayOverseas Jurisdiction•SingaporeSector•Transport And StorageFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Aug 1, 2021
Start (planned)
Dec 1, 2021
Start (actual)
Dec 1, 2021
End (actual)
Oct 28, 2022
Last repayment (originally scheduled)
Jul 28, 2037

Geospatial footprint

Map overview

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This project supported the acquisition of six aircrafts by Norse Atlantic Airways AS, which is headquartered at Fløyveien 14 4838 Arendal, Norway. More detailed locational information can be found at: https://www.openstreetmap.org/node/6710828813.

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned companies

  • BOC Aviation Limited

Receiving agencies

Private Sector

  • Norse Atlantic Airways AS

Loan desecription

BOC Aviation leases six Boeing 787-9 aircraft to Norse Atlantic Airways

Interest type•UnknownMaturity•16 years

Narrative

Full Description

Project narrative

In August 2021, BOC Aviation Limited — a Chinese state-owned aircraft leasing company and wholly-owned subsidiary of Bank of China (BOC) — entered into an operating lease agreement with Norse Atlantic Airways AS — a Norwegian low-cost airline headquartered in Arendal and listed on the Oslo Stock Exchange — for six Boeing 787-9 aircraft. The leases carried a term of about 16 years per aircraft. All six aircraft were equipped with Rolls Royce Trent 1000 TEN engines and were vintage (used) aircraft previously operated by Norwegian Air Sweden and Norwegian Air UK. Financial close was achieved on September 20, 2022. The aircraft were expected to be delivered beginning in December 2021. The first aircraft was delivered in December 2021. Three more were delivered between January 1, 2022 and March 2, 2022. The fifth aircraft was delivered on or around March 9, 2022. The final aircraft was delivered on October 28, 2022.

Staff comments

1. A lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset. The lessor is the legal owner of the asset, while the lessee obtains the right to use the asset in return for regular rental payments. Under a capital lease (a financial arrangement where the lessee/borrower uses an asset and pays regular installments plus interest to the lender/lessor), rental payments are usually classified as interest and obligation payments, similarly to a mortgage (with the interest calculated each rental period on the outstanding obligation balance). AidData codes capital leases as loans. 2. Norse Atlantic Airways was established in February 2021.